What do you do if your banking institution needs a boost in customer engagement?

Personalization is overrated - except for some. High-net-worth individuals paying hefty fees expect white-glove service and a human touch. But even here, the definition of personalization is evolving. For the mass market, forget coddling. Focus on speed, efficiency, and eliminating friction. Save the personal touch for those who truly demand (and pay for) it.

This is a business model angle sometimes referred to as Customer Intimacy. As opposed to using low costs or unique product offerings, this strategy which is crucial in relationship banking, attracts and retains customer with superior experience. We keep in mind that we are here to satisfy unique, or highly-targeted, customer needs. We are in continuous learning relationships to identify the evolving client needs and always be ready to offer before clients ask. We initiate explicit or implicit dialogues with customers, capture information about their behaviors and preferences, and use that information to customize products, services, content and context to increasingly fine definitions of segments, sometimes to the point of 1:1.

To boost customer engagement, a banking institution can optimize digital channels for seamless experiences, actively engage on social media to interact with customers, and offer personalized communication and services tailored to individual needs.

It is a two-way relationships that we show clients our true values align with their vision and ideals. Whether it is demonstrating to customers that you have sound financial knowledge and networks, or that you are onto the latest trends and discussions, you continue to learn through getting certificates or getting invited to be speaker of related forums. All will accumulate positive image of you in the mind of clients. Some clients, especially the second generations according to research papers from various sources, emphasize interests in ESG related issues, so in example doing climate tech certificates or ESG programs or events would deepen your mutual bonds. There are many topics to pursue, be strategic and always lay out full plans.

Loyalty programs are often done very poorly. In my book Evergreen, I argue that true loyalty is earned, not bought. Rewards can enhance engagement when done right, but too many banks use them as a substitute for providing real value. Manipulative schemes that trap customers erode trust. The key? Align rewards with your brand, offer meaningful perks, and focus on the overall experience. Use loyalty programs to celebrate your best customers, not just to reduce churn. But first, be a bank people actually want to stick with. Earn loyalty with every interaction, not just with points. There's no shortcut to lasting relationships. Gimmicks won't cut it. Authentic appreciation, and truly great service will.

Most customer feedback is useless. It's either bland platitudes or angry rants from a vocal minority. Banks pretend to care but rarely act on it. "We value your feedback" is a hollow cliché. Surveys and forms create an illusion of listening without real change. True insights lie in behavior. Analyze what customers do, not what they say. Combine data with AI to predict needs. Feedback loops often reinforce biases. Banks cherry-pick comments to justify decisions, ignoring hard truths. Genuine improvement means confronting uncomfortable realities, not coddling complainers. Actions, not words. Don't get stuck in an echo chamber. Break the loop and focus on results.

All financial institutions ask for feedback and say they “value feedback”, but few actually empower their employees to do something about it. Banks are sales organizations, not customer service organizations. Therefore, the majority of employee empowerment and engagement is through sales goals and rewards. Instead, find more ways to empower employees to find and solve customer problems or go beyond the call of duty. Most customer experience surveys are designed to fulfill JD Power, not to actually change customer experience for the better or reward employees who do special things. If you can find ways to empower employees to take customer experience as their highest calling and OWN it, you can actually provide great service.